S&P Global Ratings affirmed its 'BBB-' rating on Maryland Economic Development Corp.'s (MEDCO) series 2020 student housing revenue bonds, issued for Bowie State University's (BSU) Entrepreneurship Living Learning Community (ELLC) project. The outlook is stable. ELLC project revenue and assets secure the bonds. A leasehold mortgage further secures the bonds. As of June 30, 2023, the project's total debt outstanding, exclusively the series 2020 revenue bonds, was $44.9 million. Under bond documents, the project maintains a debt-service-reserve fund equal to maximum annual debt service (MADS) of the series 2020 bonds, totaling approximately $2.6 million in 2033. The bonds follow a generally flat debt-service schedule from the start of principal payments in 2023 until final maturity in 2055, after capitalized-interest-fund-covered debt-service
